US, Russia Weigh Energy Deals as Sweeteners in Ukraine Peace Talks

U.S. and Russian officials discussed a package of energy deals this month that could be used as incentives to secure a cease-fire in Ukraine, according to five people familiar with the talks. The discussions took place on the sidelines of formal peace negotiations and were framed as possible grounds for easing U.S. sanctions on Moscow. Among the ideas floated was allowing Exxon Mobil to re-enter the Sakhalin-1 oil and gas project it left in 2022, the sale of U.S. equipment for Russia’s sanctioned Arctic LNG 2 export terminal and a U.S. purchase of Russian nuclear-powered icebreaker vessels. Each proposal would require changes to current restrictions that have largely shut Russia out of Western energy investment. The proposals were raised during U.S. envoy Steve Witkoff’s visit to Moscow earlier this month, at a 15 August summit in Alaska between Presidents Donald Trump and Vladimir Putin, and later inside the White House, the sources said. Russian investment adviser Kirill Dmitriev participated in the Moscow meetings. The initiative signals a pivot toward bilateral energy diplomacy after European opposition stalled earlier efforts to restore Russian gas flows to the EU. Trump has warned Moscow of tougher sanctions if peace efforts stall and has separately threatened tariffs on India, a major buyer of Russian crude. Exxon, Rosneft and Novatek declined to comment on the reported talks.